What are the methods and tips of family finance?

For families, a reasonable financial management method will maximize the income. Family financial management is conducive to the rational distribution of funds and the correct earning, saving and spending of money. What are the family financial management methods? What are the family financial tips? Xicai Jun has prepared relevant contents for you for reference.

  1. Banking

Now, many banks will basically launch bank financing. Investors can check the financing on the bank APP, and then find the financing that is suitable for them according to the details of financing. Bank financing products can be divided into five types according to the risk level: prudent products (R1), stable products (R2), balanced products (R3), aggressive products (R4) and aggressive products (R5). The increase of numbers represents the increase of risks.

Investors can choose their own suitable financial products according to this risk level. Before financial management, they should have a general understanding of their own risk tolerance. If they can't bear a lot of risk, they should choose financial products with low risk.

  1. Fund Management

Generally speaking, family financial management is mainly based on stable income, and it is not suitable to choose financial management with excessive risks. For example, it requires some experience to speculate in stocks, while in the family, everyone may be very busy, so there is no time to speculate in stocks, and the risk of investing in stocks is also great, so it is not recommended.

It is generally suggested that family financial management should focus on low risk, mainly in pursuit of stable income. For example, monetary funds or pure debt funds, where pure debt funds mainly invest in 100% bonds, are also relatively low risk. However, compared with monetary funds, the risk is slightly higher, and the income is also very good. The general yield is between 3% and 6%, which is higher than the regular return of banks.

Six Principles of Family Finance

  1. Be the master of money. Establish the concept that money is a service for people, and the purpose of accumulating wealth is to let families realize wealth freedom.
  2. Develop the habit of saving. Regardless of the family's financial situation, economy is a virtue of wealth.
  3. Learn to plan for large wealth expenditure. Reasonable planning for large household consumption can optimize the structure of household expenditure.
  4. Learn to invest and let money make money. Wealth has time value. If we do not make effective financial investment, cash assets will be eroded by inflation. Therefore, family life needs financial management, and we should learn to maintain and increase the value of family wealth.
  5. Good at controlling investment risks and avoiding major family property losses. Warren Buffett, the "god of stocks", has a financial maxim: there are two rules for investment and financial management. First, it is the most important to keep the principal under any circumstances; Second, remember the first rule.
  6. Be aware of risk responsibility. Investment must involve risks, especially in investment tools such as stocks and futures. High returns must involve high risks. Investors should have a sense of taking risks on their own, be responsible for their own actions, and be good at accumulating experience and lessons from investment successes and failures.